Astea 8-K
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
Report (Date of earliest event reported): March 29, 2006
ASTEA
INTERNATIONAL INC.
(Exact
name of registrant as specified in its charter)
|
Delaware
|
0-26330
|
23-2119058
|
|
(State
or Other Jurisdiction
of
Incorporation)
|
(Commission
File
Number)
|
(I.R.S.
Employer
Identification
No.)
|
240
Gibraltar Road
Horsham,
Pennsylvania 19044
(Address
of principal executive offices, including zip code)
(215)
682-2500
(Registrant's
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the
appropriate box below if the form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR
240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13-4(c))
ITEM
4.02. Non-Reliance
on Previously Issued Financial Statements or a Related Audit Report or Completed
Interim Review.
We
have
reviewed our accounting for capitalized software in conjunction with the
year-end audit of our financial statements by our independent auditors. As
a
result, on March 29, 2006, management advised our Audit Committee of the Board
of Directors that it had made a determination, that our accounting for
capitalized software development costs required adjustment.
Management
and our Audit Committee also discussed these issues with our independent public
accounting firm. Our Audit Committee concurs with management’s determination
that the prior accounting for capitalized software development costs had been
overcapitalized and will require restatement of certain prior period financial
statements. Accordingly, on March 29, 2006, we determined that our previously
issued financial statements for the quarters ending March 31, 2005, June 30,
2005 and September 30, 2005, contained in our quarterly reports on Form 10-Q
for
such fiscal quarters, should no longer be relied on.
In
reviewing the detail of software development costs, it came to our attention
that we had overcapitalized software development costs in the first two fiscal
quarters of 2005 and undercapitalized software development costs in the third
fiscal quarter of 2005. The impact of the restatement on basic and diluted
net
earnings (loss) per share is ($.04) in the first quarter of 2005, ($.07) in
the
second quarter of 2005, and $.03 in the third quarter of 2005, for a net
restatement of ($.08) per share.
We
anticipate filing the corrections to our quarterly financial statements on
Forms
10-Q/A in the near future. Our annual report for the year ended December 31,
2005, which was filed with the Securities and Exchange Commission on March
30,
2006, reflected these adjustments.